Volkswagen Group’s recent financial pressures are now leading Audi to consider substantial layoffs, with plans reportedly to cut up to 15 percent of its workforce. According to German media reports, Audi’s main focus for cost-cutting will not be production line positions, but rather “indirect” roles like those in development. An estimated 2,000 jobs could be eliminated in these indirect areas initially, with the total possibly reaching 4,500 jobs across various departments. This move is part of a larger cost-reduction strategy affecting different brands within the Volkswagen Group, including Volkswagen’s core workforce.
Audi has acknowledged that its board is in discussions with employee representatives, though it hasn’t confirmed the specific number of layoffs. These job cuts on Audi’s home turf reflect similar tensions that have impacted around 3,000 Audi employees in Brussels, Belgium, where a recent announcement has already indicated potential layoffs. The situation highlights ongoing economic strain within the company, with Audi’s leadership aiming to balance employee needs with fiscal responsibility, though this has yet to ease employee concerns.
The financial challenges have hit Audi’s Brussels facility particularly hard, as it faces closure due to the underperformance of the Q8 e-tron electric vehicle produced there. The plant is set to wind down operations by February 28, making it the first Volkswagen Group factory in Europe to close. Audi had attempted to find alternative uses for the site by engaging with over two dozen potential investors, though no viable business plan has been presented. This decision underscores the broader economic struggles faced by VW Group’s European operations, particularly those focused on electric vehicles, which haven’t met sales expectations.
In the U.S., Audi’s third-quarter sales figures reveal troubling trends, with a 21 percent decrease in total deliveries, primarily affecting most of its vehicle lineup. This drop reflects the broader challenges the automaker faces in maintaining competitiveness in key global markets. Notably, only two models—the e-tron GT and Q3 SUV—experienced sales growth, though even these gains were modest. The figures indicate that Audi’s U.S. presence is under considerable pressure, likely contributing to the decisions regarding workforce reductions and plant closures in Europe.
Similarly, workers at Volkswagen’s main brand are facing their own cost-cutting measures, as VW leadership proposes a 10 percent wage reduction alongside the removal of some bonuses. This is intended to help safeguard jobs and stabilize the company’s finances. The struggles across the Volkswagen Group underscore the significant financial headwinds affecting the German automaker, driven by a combination of weak demand for certain electric models, international market challenges, and broader cost-cutting strategies that impact employee job security across several regions.
